CAPITAL PRESERVATION

• Preservation of capital is a conservative investment strategy where the primary goal is to preserve capital and prevent loss in a portfolio. Examples of capital preservation tools include cash, put options, short positions and currency hedging.
  For more information on Munro Partners' Capital Preservation Mindset, you can watch this video

ETF (EXCHANGE TRADED FUND)

• An exchange traded fund (ETF) is a fund that can be traded on an exchange (e.g. ASX), like a stock, meaning it can be bought and sold throughout the day. Depending on the type of ETF and the underlying assets in the ETF, an ETF can have varying levels of risk and fees and costs associated with them.
• Most ETFs tracks an index, sector, commodity, or other asset. An ETF can be structured to track anything from the price of an individual commodity to a large and diverse collection of securities. ETFs can also be structured to track specific investment strategies, such as MAET, MCGG and MCCL.

GROSS EXPOSURES

• Gross exposure refers to the absolute level of a fund's investments, or the sum of long positions and short positions. For example, if 60% of a fund is long and 40% is short, the fund's gross exposure is 100%.
  For more information on this topic, you can watch this video

GROWTH INVESTING

• Growth investing is a stock-buying strategy that looks for companies that are expected to grow at an above-average rate compared to their industry or the broader market.

HIGH WATER MARK

• A high water mark is a demarcation point in determining the performance fee. Having a high water mark ensures that previous negative performance must be surpassed before a performance fee is accrued and payable.

HURDLE RATE

• A hurdle rate is the minimum rate of return required on an investment.

INAV (INDICATIVE NET ASSET VALUE)

• An iNAV is a measure of the intraday net asset value(NAV) of an investment. INAV is reported every second. It gives investors an estimate / indicative measure of the value of the investment throughout the day.

LIQUIDITY

• Liquidity refers to the efficiency or ease with which an asset or security can be converted into ready cash without affecting its market price.
  For more information on Munro Partners' rules on liquidity, you can watch this video

LONG POSITION

• A long—or a long position—refers to the purchase of an asset with the expectation it will increase in value.

MANAGEMENT FEE

• The amount payable to the responsible entity for managing the Fund and your investment. It includes costs such as Investment Manager fees, responsible entity fees, operating expenses and all other normal costs. Please refer to the applicable fund's PDS for details on the fees and costs associated with the fund.

NAV (NET ASSET VALUE)

• Net asset value, or NAV, is equal to a fund's or company's total assets less its liabilities. For a managed fund, the NAV is calculated at the end of each trading day based on the closing market prices of the portfolio's securities.

NET ASSET VALUE PER UNIT

• Net Assets divided by the number of units issued.

NET ASSETS

• Total gross assets less total gross liabilities.

NET EXPOSURE

• Net exposure reflects the difference between the two types of positions held in a hedge fund's portfolio. For example, if 80% of a fund is long and 20% is short, then the fund's gross exposure is 100% (80% + 20%), and its net exposure is 60% (80% - 20%), assuming all other things being equal.
  For more information on this topic, you can watch this video

PDS (PRODUCT DISCLOSURE STATEMENT)

• A Product Disclosure Statement (PDS) is a document, or sometimes a group of documents, that contains information about a financial product including the key features, the process for applying or redeeming units in the fund, the cost of the financial product and important information including the complaints handling procedure. It is important you read the PDS in full prior to making a decision to invest in a fund.

PERFORMANCE FEE

• A performance fee is a payment made to an investment manager for generating excess returns. Munro applies a high water mark and hurdle rate to our performance fees.

PUT OPTIONS

• A put option is a contract giving the owner the right, but not the obligation, to sell, or sell short, a specified amount of an underlying security at a pre-determined price within a specified timeframe.
  For more information on how Munro Partners use Put Options, you can watch this video

SHORT POSITIONS

• An investor may decide to short a security when they believe that the price of that security is likely to decrease in the near future.
  For more information how the investment team uses shorts, you can watch this video

SPREAD

• Often refers to the difference between two  prices, rates, or yields.

SWAP

• A financial swap is a derivative contract where one party exchanges or "swaps" the cash flows or value of one asset for another.